Trade wars and deals

"The US sent two warships through the Taiwan Strait on Sunday only days before the opening of trade talks with China in Beijing. This deliberate provocation over Taiwan, China's most sensitive diplomatic issue, is a clear threat aimed at forcing the Chinese to accept a US-dictated trade deal..."

"It would be difficult to overstate the importance of Xi Jinping's visits to Rome, Paris and Monaco last week. In bringing his much-remarked Belt and Road Initiative to the center of Europe, the Chinese president has faced the Continent with the most fundamental question it will have to resolve in coming decades: Where does it stand as a trans-Atlantic partner with the US and - as of Xi's European tour - the Western flank of the Eurasian landmass? The simplicities of the postwar order, to put the point another way, have began to pass into history.

There is ...mounting concern among EU members and senior officials in Brussels about China's emergence as a global power. This is natural, providing it does not tip into a contemporary version of the last century's Yellow Peril. At the same time, the Continent's leaders are highly resistant to the confrontational posture toward China that Washington urges upon them. This is the wisest course they could possibly choose..."

By contrast the weak and stupid American vassal Canada bends its knee to the wishes of warmongering Washington and utterly destroys virtually overnight the huge potential of a China-Canada relationship decades in the making.

Thanks NDPP for the link to the article that had a link to this document. The EU will continue to have major trade relations with China because their economies are already very entwined. I notice that none of the usual human rights shaming made it to the conclusions and in the body it was somewhat muted.

JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, THE EUROPEAN COUNCIL AND THE COUNCIL

EU-China –A strategic outlook

I. Introduction

The European Union (EU) and China are linked by an enduring relationship. They are two of the three largest economies and traders in the world. China is now the EU's second-biggest trading partner behind the United States and the EU is China's biggest trading partner1. Both sides are committed to a comprehensive strategic partnership, as expressed in the EU-China 2020 Strategic Agenda for Cooperation.

...

VII. Conclusion

The Commission and the High Representative invite the European Council to endorse the following actions.

Action 1: The EU will strengthen the EU’s cooperation with China to meet common responsibilities across all three pillars of the United Nations, Human Rights, Peace and Security, and Development.

Action 2: In order to fight climate change more effectively, the EU calls on China to peak its emissions before 2030, in line with the goals of the Paris Agreement.

Action 3: The EU will deepen engagement with China on peace and security, building on the positive cooperation on the Joint Comprehensive Plan of Action for Iran.

Action 4: To preserve its interest in stability, sustainable economic development and good governance in partner countries, the EU will apply more robustly the existing bilateral agreements and financial instruments, and work with China to follow the same principles through the implementation of the EU Strategy on Connecting Europe and Asia.

Action 5: In order to achieve a more balanced and reciprocal economic relationship, the EU calls on China to deliver on existing joint EU-China commitments. This includes reforming the World Trade Organisation, in particular on subsidies and forced technology transfers, and concluding bilateral agreements on investment by 2020, on geographical indications swiftly, and on aviation safety in the coming weeks.

Action 6: To promote reciprocity and open up procurement opportunities in China, the European Parliament and the Council should adopt the International Procurement Instrument before the end of2019.

Action 7: To ensure that not only price but also high levels of labour and environmental standards are taken into account, the Commission will publish guidance by mid-2019 on the participation of foreign bidders and goods in the EU procurement market. The Commission, together with Member States, will conduct an overview of the implementation of the current framework to identify gaps before the end of 2019.

Action 8: To fully address the distortive effects of foreign state ownership and state financing in the internal market, the Commission will identify before the end of 2019 how to fill existing gaps in EU law.

Action 9: To safeguard against potential serious security implications for critical digital infrastructure, a common EU approach to the security of 5G networks is needed. To kickstart this, the European Commission will issue a Recommendation following the European Council.

Action 10: To detect and raise awareness of security risks posed by foreign investment in critical assets, technologies and infrastructure, Member States should ensure the swift, full and effective implementation of the Regulation on screening of foreign direct investment.

"...The move comes hours after US President Donald Trump announced he would hike American tariffs on $200 billion worth of Chinese goods this week and target hundreds of billions more soon. The threat was made amid faltering negotiations between Washington and Beijing to end a months-long trade war.

The South China Sea isn't the only waterway that has seen recent US activity. The White House announced on Monday that it would deploy the USS Abraham Lincoln Carrier Strike Group and a bomber task force to the Middle East, in an effort to 'send a clear and unmistakeable message to the Iranian regime."

With its servile Canadian satrapy pitching in whatever way it can - e.g. next BC court appearance for kidnapped Chinese Huawei executive Meng Wanzhou - May 8.

"Two countries are embroiled in a ferocious rivalry. One country's meteoric growth has put it on a path to become the world's biggest economic superpower while the other country appears to be slipping into irreversible decline. Which country will lead the world into the future...?"

"Washington has carried out the US president's latest threat, increasing import duties on $200 billion worth of Chinese goods. The hike will come into effect on May 10. The president stressed that Beijing is mistaken if it hopes to negotiate trade later with a Democratic presidential administration..."

"The United States is aggressively and unabashedly doing what it can to isolate China and to remove it from the world of international trade. The new free trade agreement between the US and Canada is further proof of this as it essentially blocks Canada and Mexico from engaging in free trade with China. Word is that shutting out China is going to become a regular thing in all new US trade agreements. Will the EU and Japan and Latin America play ball on this? I predict that most, if not all of them will..."

"The chair of the House of Commons international trade committee wants the US to grasp the 'hit' their ally is taking over their dispute with China and Huawei. Liberal MP Mark Eyking, who is also the MP for the Cape Breton Island riding of Sydney-Victoria, said while the visit is primarily focused on the stalls facing ratification of the new NAFTA agreement, talks also discussed the fact that the Chinese trade talks seem to be overshadowing ratification and are having a big impact on Canada.

'So here again, little brother Canada, we're taking a hit for them big time, right and that's not only in our economy with canola, pork and various things, but we have Canadian citizens that are detained illegally and under a bad circumstance,' he said..."

"US President Donald Trump has declared a national emergency over technology designed or produced by 'foreign adversaries', an act widely understood to target China's ZTE and Huawei in an effort to freeze them out of the 5G market.

'This is neither graceful nor fair,' Chinese Foreign Ministry spokesperson Geng Shuang said at a news briefing on Tuesday. 'We urge the US to stop citing security concerns as an excuse to unreasonably suppress Chinese companies..."

"Foreign Affairs Minister Chrystia Freeland gave no hint today that the United States is set to lift steel and aluminum tariffs, even though Mexico's top trade representative is saying a deal for their country is imminent..."

The good news is that the new NAFTA surrender agreement is nowhere near to being ratified.

"The dwindling empire's main propaganda outlets, the New York Times, continues its anti-China campaign. It is now blaming China's president for the failure of trade negotiations with the United States. So what really happened? As Ambassador Chas Freedom lays out at length, Trump's anti-China policy has no strategy. It is one of chaos and will have echoes in many fields..."

"Earlier today, the US agreed to remove its unilateral steel and aluminum tariffs against Canada and Mexico. Many now feel that the Canada-United-States-Mexico Agreement (CUSMA) can now be ratified. Remember: Canada and Mexico have said that they would not ratify the agreement with these tariffs in place.

However, the Council of Canadians says that does not mean that Canada should proceed with ratifying CUSMA. With US progressives pushing for the deal to be reopened to address problematic provisions, like pharmaceutical market extensions, and enshrine enforceable environmental and labour provisions, the deal's ratification in the US Congress is threatened. Canadians would be foolhardy to approve this incomplete deal..."

"...In fact, the term 'trade war' has become something of a misnomer. The US [and vassals like Canada] have launched a full-scale economic war aimed at preventing the industrial and technological advancement of China and reducing it to a semi-colonial status..."

"While the ratification process in Canada could be complicated by Parliament's scheduled summer break next month, the House Trade Committee chair says the House could be recalled to get it done. 'I'm never seen that before, but it's doable,' says Liberal MP Mark Eyking. The US House Democrats have raised concerns over labour and environmental provisions in the trade deal."

Yes, MPs - do your duty to the 1% swine who want this sellout deal - in summertime while sleepy Canucklheads are paying even less attention than they usually do.

Very curious about the so called capitulation by the US over tariffs on Aluminum and Steel in order to get the Trade deal done...what are they after?

Here’s some not so crazy speculation.

Boeing 737 max scare and the impact on the US lucrative high tech aerospace sector.

I suspect that those two horrific fatal crashes have destroyed the credibility of the US aerospace sectors. These areas of production rely heavily on steel and aluminum. And tariffs ultimately only raise the costs. Inflating the already over inflated US aerospace industry.

Never expect the ICM to share the truth! The ICM treats people like as if we are ignorant mindless slaves.

"US Vice President Mike Pence is coming to Ottawa on Thursday to meet with Prime Minister Trudeau and Foreign Affairs Minister Chrystia Freeland, and at the top of the list for discussion is the swift ratification of the deal. The latest word is the Liberals intend to push the new NAFTA legislation through second reading and have it sent to committee as early as Thursday!..."

I doubt it too. Ignorance, apathy compliance and complicity is the new normal. Resistance is barely there. Canada has never been more neoliberal, pro-imperialist or reactionary. Including many who present themselves as 'progressive'. Iyra's position is correct. There should be massive popular protest to this continental power play by corrupt, corporate elites and their colluding co-conspirators and gulls. Instruct your MP to VOTE NO on NAFTA!

'Of one thing only can we be sure. We shall remain stupid.' - Voltaire -

"Why is Canada rushing to ratify CUSMA soon to be former NAFTA before the US can ratify? Bizarre Canada would complete possible changes before Congress aks for changes. Are we being paid for adding billions to pharma costs?

On important questions regarding fabric of empire such as NATO war on Libya or 'free trade', you will always find Canadian cross-party collaboration with a few theatrical flourishes of pretend opposition at best thrown in. Since Canadian 'progressives' are also mostly only interested in conveying an impression of 'resistance' all work seamlessly together to achieve a common objective. Canada's 'democracy' is largely pretend based on the willing suspension of disbelief.

The planned increasing tariffs on Mexico just announced by Trump is a game changer...it will push Mexico to advance its plans to process its retail fossil fuels....the diplomatic attempts by Obrador to calm any potential confrontations, will heat up, while the integrated globalized North American economy will be hit hard...this could be the catalyst for financial collapse!

"Prime Minister says new trade deal includes progressive provisions. Democrats in Congress have expressed reservations about the deal - saying it falls short on environmental protections, labour standards and the measures to enforce them in Mexico, the dispute resolution process and measures they fear could make drug prices more expensive. Pence said he came to Ottawa to make the case again for speedy ratification of the deal..."

Trump Threatens Tariffs on Mexico if it Does Not Stem Flow of Migrants into the US

"In a surprise announcement that could compromise a major trade deal, US President Donald Trump announced Thursday that he is slapping a five per cent tariff on all Mexican imports to pressure the country to do more to crack down on the surge of Central America migrants trying to cross the border. He said the percentage will gradually increase 'until the illegal immigration problem is remedied.'

The announcement comes as the administration has been pushing for passage of the Canada-United-States-Mexico Agreement that would update the North American Free Trade Agreement..."

"In order not to pay Tariffs, if they start rising, companies will leave Mexico, which has taken 30% of our Auto industry and come back to the USA. Mexico must take back their country from the drug lords and cartels. The Tariff is about stopping drugs as well as illegals."

Trump's 'Art of the Deal'. Nobody but fools or vassals sign such surrender deals as NAFTA/USCMA with the Yanqui. Just ask Iran what Washington's 'agreement' means. And certainly no socialist worthy of the name ever supports such 'free trade.'

"After National Post published an article by UN Special Rapporteur Michael Lynk affirming the illegality of Canada's free-trade agreement with Israel, I posted a comment praising the Post's decision to publish the article but the Post blocked my comment. Why?"

"At stake is whether China will agree to do what Russia did in the 1990s, put a Yeltsin-like puppet of neoliberal planners in place to shift control of its economy from its government to the US financial sector and its planners..."

"In a new hard-hitting Council of Canadians report, economics and pipeline expert Gordon Laxer reveals special provisions in the new trade deal that will allow the federal government to continue to subsidize the Trans Mountain Pipeline (TMX)."

Barely noticed national surrenders to international capital and corporate rule now come thick and fast...

"Please find enclosed a letter from Canadian and Quebecois politicians from across political parties who join us in asking French politicians to not ratify CETA. 'The current agreement promotes deregulation and gives even greater power to transnational corporations..."

"Oddly, or perhaps not, the Democrats deemed most likely to unseat Donald Trump have the policies most like his. Leading Democrats have acted to undermine their stated environmental policies using 'economic' devices like trade agreements. These stealth policies are more insidious than blatantly anti-environmental legislation because they are hidden..."

"...With lawmakers to the south leaving Capitol Hill for a five week break without passing the new deal, Trudeau's comments seem to chill the prospect of a summer recall Parliament order to see the deal passed in Canada before the federal election begins..."

"Trade talks have stalled in Beijing as the US and China seem to have made very little progress on a deal. Professor Richard Wolff and Peter Schiff of Euro-Pacific Capital join the show for a power panel as they take on trade-wars, rate cuts and much, much more...

Re NAFTA:

'I think there are a lot of problems here. The new treaty is in trouble. Between the ambivalence of the Canadians and the Mexicans and the determination of the Democrats not to go along, Mr Trump is going to have a tough time pushing this thing through. The uncertainty this has created does not bode well for any of the three economies, all of which are in trouble and this is making matters worse...' - Economist Richard Wolff

Furious French farmers dump manure at offices of MPs who voted for CETA. 'France had a revolution in 1789. This didn't happen by doing nothing. There is collateral damage in a revolution. We are currently in a revolutionary phase.' - French farmer [See also #191]

None of this market turmoil seems to impact people any more negatively then when the markets are supposedly great. Either way plants close and work is moved to cheaper locals. Unless you have actual investments, and even then, it doesn't seem to make a difference.

"The Chinese Yuan has sank to its lowest level in 11 years as investors fear Beijing will force China's largest banks to bailout smaller regional ones. At the same time Trump has accused China of currency manipulation suggesting Beijing and Washington are no closer to solving their long running trade war..."

"Markets are trembling across the globe as the trade war has broken into the currency realm. Richard Wolff, Prof of Eonomics, Emeritus, at the University of Massachusetts, Amherst, is on hand to toil through the escalating tensions."